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Strategies & Market Trends : The coming US dollar crisis -- Ignore unavailable to you. Want to Upgrade?

To: LTK007 who wrote (16598)	1/23/2009 5:39:57 PM
From: ggersh	Respond to of 71447

Max, damn the torpedoes full speed ahead....Govt. only thing holding it together...our way of life in for a big shock...

To: LTK007 who wrote (16598)	1/23/2009 5:42:48 PM
From: carranza2	Read Replies (2) \| Respond to of 71447

The legislation gives bankruptcy judges the ability to chop amounts off the principal on a mortgage to an affordable sum. Citi backs it. Obviously, the judges will do one of two things. First, they will adjust the debt to the value of the residence so that debtors are not underwater. Second, they might chop off enough of the principal so that the debtor can pay without too much trouble regardless of the value of the house. There are generally two kinds of BK judges, those who favor debtors and those who favor creditors. The creditor judges will be sparing, the debtor judges are going to make the debtors happy until they screw up again. It is one of the elements of a real estate fix. For Citi to back this means that the 2008 fixes did nothing. I suspect the bill will pass. Much better than a bunch of expensive and useless foreclosures. Citi obviously sees it this way too. Don't see it as an enormous issue. Commonsensical, given the times. We'll see.